Recently, a wider swath of the market seems to be taking notice. Earlier this month, the Wall Street Journal published an article titled The Hottest Metric in Finance: ROIC. We’re taking it a step further, and have created a new Model Portfolio.

This model portfolio only includes those companies that not only receive our Very Attractive rating, but also tie executive compensation to ROIC. Superior compensation policies represent an underappreciated competitive advantage that should drive these 15 stocks to outperform in the future. In addition, by including only companies with strong businesses and cheap valuations, we give investors a margin of safety with the potential for outsized returns.